The acceleration principle relates investment to changes in: MCQ with Answer and Explanation

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The acceleration principle relates investment to changes in:

A. consumption or output

B. money supply

C. government expenditure

D. interest rates

Answer: Option A

Solution (By JKSSB Mock Tests)

The accelerator principle states that investment depends on changes in output or consumption.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'SWAYAM' platform is related to:

A. tax filing

B. online banking

C. stock trading

D. online courses and MOOCs

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Correct Answer: Option D

Explanation:
SWAYAM is an online platform offering MOOCs.

This question belongs to: Economy GK Economy Set 1

Question #2

A monopolist maximizes profit at the level of output where:

A. MR = MC

B. AR = AC

C. AC is minimum

D. MC = AR

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Correct Answer: Option A

Explanation:
A monopolist maximizes profit by producing where marginal revenue equals marginal cost.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of market failure, externalities lead to:

A. Perfect competition

B. Zero role for government intervention

C. Efficient market outcomes

D. Divergence between private and social costs or benefits

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Correct Answer: Option D

Explanation:
Externalities cause a divergence between private and social costs (or benefits), leading to over- or under-production relative to the socially optimal level.

This question belongs to: Economy GK Economy Set 1

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